This file provides all the information and steps to replicate the results of the paper "Minimum Wages and Insurance within the Firm" by Effrosyni Adamopoulou, Francesco Manaresi, Omar Rachedi, and Emircan Yurdagul, to appear in Journal of Labor Economics.

The structure of this file is as follows: first we describe all the steps for the replication of the empirical evidence, and then provide information on the process of solving the model and producing the model statistics and figures. 


EMPIRICAL EVIDENCE:

The routines to produce the final empirical results are in the folder "Data". We also report in that folder the file "data_availability_statement.docx" which informs about all the necessary steps to access exactly the same dataset used in the paper.

To reproduce the results in Tables 1 and 2, use the routine "replication_JOLE_online.do" in the subfolder "do files". The results of these exhibits are reported in files "table1.txt" and "table2.txt" in subfolder "tables main".


MODEL:

All the routines related to the model are in the folder "Model".

To run the model, we report the full set of routines associated with the different model specifications.

1) Benchmark: The subfolder is BM_FINAL. The fortran code "solve_FINAL.f95" in the folder finds the model solution (policy & value functions, distributions) and the simulations.
The main inputs are the txt files load_pars (parameters), ahigh (highest wealth grid level), minw (mínimum wages and unemployment benefits), and random files for simulations (randomXXX). The subfolder also includes the resulting solutions to be used as guesses when running if needed (by setting load=1).

2) Alternative models: There are 8 other models solved in the paper. We give the files for these in separate subfolders, which includes the fortran codes for model solutions, and the necessary input as in the benchmark. For most models, the fortran codes are essentially the same as in the benchmark, just commenting out the simulation part (which are not used in the paper for the alternatives). The only different code is the one with only-within-occupation complementarities (Appendix G.5). The models are as follows:
- BM_nominw_FINAL: Benchmark, taking out the minimum wages.
- BM_nominwrecalx_FINAL: Benchmark, taking out the minimum wages, recalibrating the x's to keep the same average wages across skills.
- BM_rhoX_FINAL, X\in\{10,60,90,99\}: 4 alternative calibrations with rho={0.1, 0.6, 0.9, 0.99} reported in the paper.
- BM_sgepsrecal_FINAL: Alternative calibration calibrating the taste shocks to match the sd of log wages.
- BM_CD_withinocc_FINAL: Alternative model, and its calibration, with only-within-occupation complementarities. The fortran code here is fundamentally different from others, since the model specification is different.

After having solved the model, you can use a set of Do files to reproduce all the model statistics and figures. All these files are within the main folder "Model"

- MAIN MODEL.do: This is the overarching do file that runs the specific do files in charge of different tasks.
- pol_amry_FINAL.do: Takes the output pol.txt from each model, computes model stats and produces a .dta file to later merge across models and produce figures.
- Other figs_FINAL.do: For the benchmark, produces figures to illustrate the calibration of workers' skills, model-implied unemployment, minW bite.
- read_sim_FINAL.do: For the benchmark, prepares simulations to later run the regression of passthrough on workers.
- regs_datalike_FINAL.do: Regression of passthrough on workers (only for the benchmark).
- pol_compare FINAL.do: Merges all the outputs across models and produces the welfare figures.
- elasticity figures FINAL.do: Merges all the output across models and produces the elasticity figures.

With all this set of routines, it is possible to replicate all model implications. 

Table 3: Model stats come from the moments.txt produced separately for each model (in each corresponding folder). The first row is variable "avgsdwoxinfirm", second row is "sdwoxoverall", third row is "sdw".

Figures 1,2,3,4: All produced into Model/BM_FINAL/comparefigs.

Table 4: Regression output is produced in Model/BM_FINAL/regzhatmiscrs_incch_occ1.tex.
